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The Reverse Capital Flow

Indian Investment Abroad

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The web version of this article corrects a few errors that appeared in the print edition.

India's investment abroad is overwhelmingly in the form of direct investment and this has been growing rapidly. The export of capital is a sizeable fraction of the foreign direct investment infl ow over the last six years. Shortcomings in the regulatory environment allow the end use of investments abroad to remain mostly opaque. While there is a keen debate on the public interest in allowing or limiting FDI, it is surprising that there is no such engagement with Indian direct investment abroad.

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